Toyota's Marketing Strategy and Profitability

This assignment examines Toyota's successful marketing strategies and their contribution to the company's profitability. It highlights the importance of market segmentation, offering diverse products and services tailored to customer needs, and leveraging a strong social media presence to attract and retain customers. The analysis draws upon various academic sources and real-world examples to illustrate how Toyota effectively utilizes the marketing mix to achieve its business objectives.

Marketing

Contents
Introduction.................................................................................................................................................4
Main Body...................................................................................................................................................4
Segmentation...........................................................................................................................................4
Marketing mix.........................................................................................................................................5
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

Introduction
In the modern era organizations are facing high completion and to survive in the
corporate world for longer duration entities have to take support of marketing activities. It is the
set of ongoing communication process which supports in making communication with customers
and making strong relationship with them. Companies are using marketing mix in order to satisfy
needs of clients in order to gain high profit (Erragcha and Romdhane, 2014). For the present
report Toyota Motor Company is being taken into account which is a leading automobile firm.
Current assignment will discuss the segmentation and its importance in the business. Marketing
mix of Toyota will be illustrated in the study.
Main Body
Company description
Toyota is established in the year 1937 and now it has become largest vehicle
manufacturer. Its segments involve selling, manufacturing, designing, assembly of passenger
vehicles. It has become top most market leader of selling hybrid electric vehicles. It has capture
huge market and has gained competitive advantage too (Srijumpa, 2017). Records shows that
cited firm manufactures more than 5 million vehicle in year. It has employed more than 320000
employees across the world. It is found that profit of Toyota in the year 2016 was 28.40 trillion
and it has produced 16985870 units in the same year.
Segmentation
Market segment is the process in which organizations divide its market into potential sub
groups. It supports markets in planning for marketing campaigns. It can be defined as process of
bifurcating in which entities divide large groups into small units (Abe. and Pednault,
International Business Machines Corporation, 2013). Firms divide the market on the bases of
age, income, education, religion, nationality, geographic etc. All age group persons have
different needs and wants and they always select differed products as compare to old age people.

Mainly it can be sub divide into three main section; demographic, psychographic and
geographic. Significance of segmentation:
 Market segmentation is the beneficial tool through which company can identify needs
and desires of users and can offer them products accordingly (Azeem and Sharma, 2015).
It can help in satisfying them and making them loyal towards the brand.
 Segmentation assists in targeting right people for the right products. For instance Toyota
is working in the automotive industry; it offers vintage cars to old people and offers
sports cars to young generation those who are interested in such products (Florence and
et.al, 2015).
 With the effective segmentation strategies companies can enhance their profit to great
extent.
Segmentations are measurable, accessible and profitable for the Toyota. Cited firm focus
on demographic segmentation and concentrates more income of the persons accordingly it
promotes its brand. Apart from demographic cited firm also pay attention of psychographic
segmentation (Al-Azzam, 2016). Toyota has target to the size of family and income group. It
offers Cruiser, Parado cars for large family size people. Because their buying power is average
and they can easily purchase such type of products.
On other hand in the psychographic segment, Toyota focuses on high class people and
offers them Altis sport model, Fortuner etc (Osma. and et.al, 2016).
Marketing mix
Marketing mix is the combination of different factors that influence the mind of
consumers and help in making them loyal towards the brand. It can be described as putting right
product at righ place at correct price and deliver to the right person as well. Toyota focuses on
needs of consumers and accordingly marketing team of the organization plan the activities. It
supports in satisfying the clients buy this way they buy the products of organization (Ahmed,
2014). That helps in increasing revenues of the company to great extent. Marketing strategies of
the cited firm is very powerful and eye catching, that influence the mind of users to great extent.
Earlier cited firm was working in the limited area but due to its marketing strategies it has
covered the huge market share and now it has become the world’s largest manufacturing brand in

UK. Toyota is still working hard for getting more success and highlighting the effectiveness of
marketing mix of the organization:
Products:
Product is the essential element of marketing mix, companies manufactures satisfactory
products for consumers so that they buy the goods of company. But before offer ring products
companies have to ensure that they deliver them products as per their needs and demand. Toyota
has variety of products and services for different kind of people (Hennart, 2014). Those who
belong to lower income company offers them average cars whereas people those who are able to
spend more amount, cited firm provides them attractive sports and luxurious cars. It identifies the
target customers and accordingly plan the marketing mix. Products of the company involves such
as automobile, engines, spare parts, welcab series etc (Mukherjee and Shivani, 2016).
Toyota has most popular products such as lexus that counts as luxury cars. Apart from
this cited firm offers modified welcab seriers for disable person. It shows that organization has
diver products and services that helps in minimizing risk of failure. All age, income, status etc,
group people can buy the services of entity and they feel satisfy with the products of the
organization (Kavosh and Asadi, 2014).
Prices
Price is the one of the crucial element of marketing mix that basically means the amount
that buyers can pay for enjoying the products or services of the organization. There are several
pricing strategies which are used by different entities as per their size, scope etc. Market
penetration, skiming, neutral pricing etc,. are several strategies of this (Saxena, 2014). It is
another factor that influences the mind of consumers to great extent. Prices are decided by the
organization on the bases of competition, market share, material cost, quality of the product etc.
It varies from age an income. Toyota pricing strategies are very unique in nature. It prices
depend upon the product line and type of model. Cited firm is using two types of pricing
strategies to set its product’s cost such as market oriented pricing and value based pricing
(Alshammari and Islam, 2014).

Toyota takes supports of market oriented pricing strategy in the workplace, it sets its
products cost as per market conditions and competitors prices. Its trucks and sedans are based on
the same strategy. Apart from this cited firm also takes support of value based pricing strategy. It
keeps high cost of its quality cars such as Prius and Lexus cars (Baker, 2014). It shows that
Toyota looks upon the macro and micro factors and accordingly it sets its products prices.
Place
Distribution is the one of the essential part of marketing mix of any organization. It
involves intensive, exclusive, selective franchising etc. strategies. Corporations can select as per
their needs and potential. Place can be explained as location where the final goods are to be sold.
It can be known as physical stores or virtual stores. Toyota gives dealership of its cars to big
business person who is working well in the market (Ahmed, 2014). By this way it promotes the
brand name in effective manner. Apart from this cited firm sales its products through retail
stores. There are many showroom of Toyota where people can buy its products at affordable
prices.
Promotion
There are many methods of promoting the brand well such as advertisement, PR,
personal selling etc. In the modern business world most of the organizations are taking support of
social media marketing (Al-Azzam, 2016). That is the cheapest and fastest way to promote the
brand effectively. Toyota uses direct selling promotion strategy in which cited firm offers online
products to the consumers. Apart from this cited firm advertise its products well and there are
many sales executives of the company those who are working well in the firm. They sell cars of
the company to final consumers.
Toyota builds relationship with public and gains their trust in order to promote its brand
well. By this way maximum people get attracted towards the corporation and profit of the
organization can get enhanced (Florence and et.al, 2015). Entity has conducted Toyota together
green program and meal per hour programs. Both these are great initiatives that has created
positive brand image of cited firm in the mind of consumers. By this way they get attracted
towards the organization and buy its products. This strategy supports the cited firm in
accomplishing its objective soon (Erragcha and Romdhane, 2014).

People
Toyota targets right people those who have capacity to buy the products of cited firm.
Consumers are the assets of organization, it is necessary to target correct clients for correct
products. Cited firm focuses on the all age group person, it has variety of products that can
satisfy all people significantly (Azeem. and Sharma, 2015). Toyota takes feedback time to time
with its users so that their point of views can be analyzed. By this way Toyota modifies its
products and improves its existing cars. That helps in satisfying needs of buyers.
Process
It is another part of marketing mix in which actual execution is being considered by the
organization. Toyota delivers its cars on time to customers that are why all its clients are highly
satisfied with the services of company (Hennart, 2014).
Physical evidence
Toyota’s layout is very attractive and eye catching. Company has stores in all visible
places so customers never find troubles.
Toyota uses marketing mix strategies significantly, its marketing idea is giving great
opportunity to the cited firm to grow well and to earn more profit in the corporate market. Sales
executives of the organizations treats users well and make them understand in such manner so
that they be positive and make their mind to buy products of the organization (Mukherjee and
Shivani, 2016). Target market of Toyota are all age and income group people, apart from this
cite firm target to new geographical locations well in order to expand its business across the
world.
Due to its effective marketing strategies, Toyota has build good relationship with the
consumers and it has developed strong brand image in the automobile market. Now people
purchase the cars with the brand name (Kavosh and Asadi, 2014). Its quality products and
services are able to increase revenues of the enterprise to great extent. These marketing strategies
have made the Toyota more successful and now it has become the leading brand of automotive
industry. Company is having strong social presence that is why it is able to make effective
coordination with the mass audience. That is helping the cited firm in attracting more customers

towards the brand (Azeem and Sharma, 2015). Due to its marketing strategies company has
grown well and its satisfactory products have enhanced loyalty of the users towards the brand to
great extent.
Conclusion
From the above discussion it can be said that marketing is the essentials function that
supports organization in accomplishing its objective soon. Marketing is the activity that helps in
gaining competitive advantage to the entity. From the report it is found that segmentation is very
important part of marketing planning, with the help of this companies can divide potential buyers
into sub groups and corporation can offer them products and services as per their needs and
demands. Toyota is offering variety of products and services to its customers that are why people
are satisfied with the brand and they give positive feedbacks to others as well. That helps in
increase profitability of the company. Cited firm is also having strong social media presence that
helps in increasing number of clients of the organization. That is why profitability of the
corporation is increasing.

References
Books and journals
Abe, N. and Pednault, E.P., International Business Machines Corporation, 2013. System and
method for marketing mix optimization for brand equity management. U.S. Patent 8,452,639.
Ahmed, M.N., 2014. Synchronizing marketing mix & personal brand mix elements for
developing a personal brand. Journal of Management Value & Ethics. 4. pp.17-30.
Al-Azzam, A.F.M., 2016. A Study of the Impact of Marketing Mix for Attracting Medical
Tourism in Jordan. International Journal of Marketing Studies. 8(1). pp.139.
Alshammari, S.D. and Islam, R., 2014. Effect of the antecedent factors on the degree of
adaptation the marketing mix in the Malaysian export companies. Advances in Natural and
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Azeem, S. and Sharma, R.R.K., 2015. Elements of the retail marketing mix: a study of different
retail formats in India. The Business & Management Review. 5(4). pp.51.
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Florence, K. and et.al., 2015. The Effects of the Marketing Mix on Choice of Tourist
Accommodation by Domestic Tourists in Kenya.
Hennart, J.F., 2014. The accidental internationalists: a theory of born globals. Entrepreneurship
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Kavosh, K. and Asadi, A., 2014. Study effects of marketing mix and company's image on brand
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Mukherjee, S. and Shivani, S., 2016. Marketing Mix Influence on Service Brand Equity and Its
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